Union power curbed by NSW construction rules

The New South Wales Government is bringing in strict new rules for construction companies working on public sector projects, in a bid to reduce industrial disputes on building sites.

The Government wants all companies bidding for infrastructure projects to sign a code that would ban "No ticket, no start" signs on worksites and prevent union representatives from running site inductions.

The rules will also bar provisions in industrial agreements which require employers to consult with unions about pay rates and the number of contract or casual workers on a site.

The Government says it is introducing the code in response to the axing of the Australian Building and Construction Commission, which was created by the Howard federal government.

The NSW president of the Construction, Forestry, Mining and Energy Union (CFMEU), Rita Mallia, has labelled the move a politically motivated stunt.

"This is nothing more than intimidation by the Government and you can dress it up in some of the colourful phrases that they like to use but it is, at the end of the day, a signal to workers that you've got to keep your head down," she said.

"You shouldn't engage on the issues of safety and other things that affect your interests at the workplace and you certainly shouldn't engage with the union in respect of those.

"There's no basis for this code. There is a federal code in place. This state code is nothing more than a political attack on the CFMEU and the other construction unions," she said.

But NSW Treasurer Mike Baird has denied it is designed as an attack on the power of unions.

He says construction site disputes can add hundreds of millions of dollars to the cost of infrastructure projects.

"It's just not true. This is about ensuring we don't see unnecessary blow-outs, we don't see illegal activity," Mr Baird said.

"We would anticipate that unions will have strong views. We're happy to consider and listen to those views.

"I don't think any union would be wanting to support illegal activity or unnecessary price gouging and if they did then that is something we would be prepared to lock horns on because we want to protect the long term interests of the state."